Save by not paying an annual card fee while still having the benefit of earning Frequent Flyer reward points while making daily purchases.
What is a no annual fee frequent flyer credit card?
A no annual fee frequent flyer credit card is a credit card that is linked to a frequent flyer program and has no annual fee. You can take advantage of not paying an annual fee and earn points for rewards at the same time.
No Annual Fee Frequent Flyer Credit Card Offer
The Qantas American Express Discovery Card is a credit card that allows you to earn Qantas Frequent Flyer points with a $0 Annual Fee. Your love of travel can be indulged in full as you get a range of fabulous support features and benefits.
- $0 p.a. annual fee
- 20.74% p.a. on purchases
- 0.99% p.a. for 6 months with 1% balance transfer fee on balance transfers
- 44 days interest free
- Minimum Income Requirement of $35,000 p.a.
Compare No Annual Fee Frequent Flyer Credit Cards
What are the types of no annual fee frequent flyer credit cards?
- Qantas Frequent Flyer credit cards allow you to earn points for your everyday spending. Points are automatically added into your account and can be redeemed for different rewards such as shopping, vouchers, electronics, flights, accommodation, rental cars as well as gifts and merchandise from the Qantas Frequent Flyer shop.
- Velocity Frequent Flyer credit cards also work in a similar way, but belong to the Virgin Velocity airline, still allowing you to earn points on your everyday spending and redeeming points for nearly the same rewards.
How does a no annual fee frequent flyer credit card work?
These work in the same way as normal credit cards – there are some interest free days available as well as a balance transfer offer and the option of accumulating frequent flyer points as you spend. While they don’t have an annual fee, you may also have bonus points available when make your first purchase. Complimentary insurances may also be included as a feature for these cards.
How to compare no annual fee frequent flyer credit cards
- Interest free days and interest rates. Ensure the interest free days and interest rates suit your financial situation. The main purpose of a rewards credit card is to let you make purchases, so your credit card shouldn’t be pulling you into debt.
- Is it easy to earn points? Compare how points are earned, for what transactions, what rates and what partners give you bonus points. Many cards feature two linked cards, one of which may have a higher earning rate.
- What are your points worth? Working out how much dollar value yours points are worth can help you compare. With no annual fee, it may feel like one card provides more offset than the other.
- How can you redeem your points? If you’ve chosen a frequent flyer card, then it may be worthwhile to choose a program that has easier terms and conditions to understand. If you’re going to redeem points for flights then you don’t want to be set back by limitations.
- Cap and expiry. Many credit cards have a cap on the number of points you can earn in a certain time frame. So if you’re saving up for a certain flight or you need to make sure those points that you’ve so hard to accumulate won’t just expire.
Pros and cons of a no annual fee frequent flyer card
- No annual fee. A lot reward credit cards charge a high annual fee which could potentially knock back all the benefits that you gain with rewards. However, by paying no annual fee, you may be able to gain more value from your rewards.
- Great for businesses. Business travellers are often able to accumulate a large number of points on hotel stays and airfares, due to business trips. Businesses can also gain points on their business expenses.
- Great for frequent flyers. For those who travel a lot, you can earn reward points overtime without worrying about paying an annual fee.
- Great for big spenders. If you spend enough money and earn enough each month, you can also accumulate points to redeem for items at the airline reward websites.
- Higher interest rates. To compensate for the rewards and no annual fee offer, these type of credit cards could have a higher interest rate. Conduct a credit card comparison and determine whether the difference in interest is worth losing the annual fee.
The biggest mistakes to avoid with no annual fee frequent flyer cards
- Don’t spend just to earn points. Most credit card providers won’t award you points if you haven’t paid off your balance in full. You must not spend to earn points, and no matter the reason for your spending, you should always aim to clear your balance in full when your statement comes. If you overdraw on your credit card, you could get hit with bank fees and credit card interest which could snowball into debt.
Frequently asked questions about no annual fee frequent flyer credit cards
Does HSBC have a frequent flyer credit card with no annual fee?
To our knowledge, HSBC currently does not have a frequent flyer credit card with no annual fee*.
Does ANZ have a frequent flyer credit card with no annual fee?
To our knowledge, ANZ currently does not have a frequent flyer credit card with no annual fee*.
*Information current only up to 08 July 2013